Content
Reverse Charges
Beyond The Grave
Director's Two Hats
IHT Plan Fails
VAT And Cash
Amnesty International
An Inspector Calls
Losing A Bet
Caring Doctors
TAAR Brush
Made To Be Broken
Flat VAT
Safe Deposit
Tax On Gas
Working Late
Composite Companies
Excuses, Excuses
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An employee stole over £9m from his employers to fund his gambling habit. The spread betting business to which he gave the money knew where it had come from. When all was discovered, the employer successfully sued the betting business for the return of the money, because they received what they knew ought not to have been paid to them. The gambling company then sued the directors and auditors of the employer for a contribution towards their loss because - according to their argument - the employee was only able to steal the money because the directors and auditors were negligent. The judge ruled that there was a correct principle here - if the employer company had not been able to recover its money from the gambling company, the auditors and directors might have had to make up the loss if they could have been shown to be negligent. However, there was no way that the directors or auditors would be made to contribute to the gambling company when it knew what it was getting and stood to benefit, and they did not know and did not benefit at all. It's a reminder that directors and auditors have a duty to mind their company's assets - and also that lawyers will always look for someone else to blame!  |